School Board of Highlands County -Insurance Update for

2 Step 2 Your Contribution Single $1,000 Family $2,000 (your responsibility) Step 1 Base Health Reimbursement Arrangement (HRA) Fund* SBHC Single $1,000 Family $2,000 Step 3 Health Plan In-Network CIGNA pays 80% You pay 20% Preventive Care covered 100% (In-Network Only) Step 1 + Step 2 Deductible Single $2,000 Family $4,000 Review - Components of HRA Health Plan IMPORTANT NOTES: 1.HRA fund available for Medical Claims and Pharmacy Claims. 2.Unused funds will ROLLOVER from previous year. 3.Out-of-Pocket Maximum includes Deductible Step 4 Out-of-Pocket Maximum Single $5,000 Family $10,000 (100% medical coverage) HRA Plan

3 CIGNA Health Plan Improvements/Changes for the 2013 Plan Year: The HRA fund increases: From $750 to $1,000 for Single coverage From $1,500 to $2,000 for Family coverage The deductible reduces: From $2,500 to $2,000 for Single coverage From $5,000 to $4,000 for Family coverage The current Buy-Up plan will discontinue on 12/31/12

HRA Fund & Deductibles Compared Renewal Deductible -$2,000 Renewal HRA Fund Pays -$1,000 Deductible -$5,000 HRA Fund Pays -$1,500 Renewal Deductible -$4,000 Renewal HRA Fund Pays -$2,000 Single Plan Family Plan Current Year 2013 Deductible -$2,500 HRA Fund Pays -$750 4

What will remain the same: Plan structure remains the same (i.e. preventive care, coinsurance, lab work and x-ray benefits, etc.) The dependent coverage deductions will remain the same The Out-of-Pocket Maximum remains the same; $5,000/Single and $10,000/Family Employees will continue to be required to complete the Health Assessment with biometric data to be covered by the Health Insurance Plan 5

6 Preventive Care – Know Your Numbers! Schedule your annual physical – wellness exam – Post Card Reminders were mailed first week of July – Annual Wellness Exam is covered by Cigna at 100% if a Network Provider is used Know Your Numbers! Ask your doctor for your results of your associated preventive care lab work: Total Cholesterol HDL Cholesterol Blood Pressure – Systolic/Diastolic Height Weight Waist Circumference

Health Assessment Campaign Employees are to take their annual Health Assessment online at between 8/1/12 – 9/30/12www.mycigna.com Computer Lab Hours – Available if anyone needs a computer or assistance Each Monday in August and September at the District Office 3:00-6:00 with the exception of 9/3/12 which is a Holiday. 7

Flexible Spending Account (FSA) - Optional  Employee enrolls during Open Enrollment and elects an annual amount for their FSA account. Contributions are made as a payroll deduction in equal amounts each pay period (2013 Health Care FSA annual max. = $2,500)  FSA account reimburses the employee for out-of-pocket expenses incurred in that plan year via reimbursement requests sent to CIS, once the HRA fund is expended  Employee can be reimbursed for eligible out-of-pocket health/dental expenses up to their annual elected amount, before the full contributions have been made  Plan annual amount carefully based on known medical expenses to be incurred in the calendar year. If all account contributions are not used (reimbursed), remaining contributions are forfeited.  Employee receives tax advantage because FSA contributions reduce taxable income  Employee enrolls during Open Enrollment and elects an annual amount for their FSA account. Contributions are made as a payroll deduction in equal amounts each pay period (2013 Health Care FSA annual max. = $2,500)  FSA account reimburses the employee for out-of-pocket expenses incurred in that plan year via reimbursement requests sent to CIS, once the HRA fund is expended  Employee can be reimbursed for eligible out-of-pocket health/dental expenses up to their annual elected amount, before the full contributions have been made  Plan annual amount carefully based on known medical expenses to be incurred in the calendar year. If all account contributions are not used (reimbursed), remaining contributions are forfeited.  Employee receives tax advantage because FSA contributions reduce taxable income 8

Employee w/ Single – Health Plan Coverage DeductibleEmployer Paid HRA Fund Out-of-Pocket to Meet Deductible (Expense Gap) # of Paychecks per Year Per-Paycheck Contribution 24-Pay Employee $2,000- $1,000= $1,000÷ 24= $ Pay Employee $2,000- $1,000= $1,000÷ 20= $50.00 Employee w/ Family – Health Plan Coverage DeductibleEmployer Paid HRA Fund Out-of-Pocket to Meet Deductible (Expense Gap) # of Paychecks per Year Per-Paycheck Contribution 24-Pay Employee $4,000- $2,000= $2,000÷ 24= $ Pay Employee $4,000- $2,000= $2,000÷ 20= $ Bridging the ‘Expense Gap’ with an FSA When the HRA fund is expended, employee pays medical/pharmacy costs out-of-pocket until deductible is met. Once the deductible is met, coinsurance benefits apply and prescription costs are reduced: CoinsurancePrescriptions (Retail) Employee Pays 20% Generic - $15 Preferred Brand – 40% (Min: $20, Max: $50) Non-Preferred Brand – 50% (Min: $40, Max: $100) 9